Matrix Service Company (MTRX) has reported 6.03 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $9.34 million, or $0.35 a share in the quarter, compared with $9.94 million, or $0.37 a share for the same period last year.
Revenue during the quarter grew 7.03 percent to $341.78 million from $319.33 million in the previous year period. Gross margin for the quarter contracted 139 basis points over the previous year period to 9.44 percent. Total expenses were 95.82 percent of quarterly revenues, up from 95.27 percent for the same period last year. That has resulted in a contraction of 54 basis points in operating margin to 4.18 percent.
Operating income for the quarter was $14.30 million, compared with $15.10 million in the previous year period.
“We are pleased with our first quarter results which reflect strong revenue and earnings per share, led by very strong operational performance in our Storage Solutions segment," said Matrix Service Company president and chief executive officer John R. Hewitt. "Additionally, project awards of almost $260 million support our fiscal 2017 revenue guidance."
For financial year 2017, Matrix Service Company projects revenue to be in the range of $1,300 million to $1,450 million. The company forecasts diluted earnings per share to be in the range of $1.10 to $1.40.
Working capital increasesMatrix Service Company has recorded an increase in the working capital over the last year. It stood at $160.18 million as at Sep. 30, 2016, up 16.94 percent or $23.21 million from $136.98 million on Sep. 30, 2015. Current ratio was at 1.71 as on Sep. 30, 2016, up from 1.63 on Sep. 30, 2015. Cash conversion cycle (CCC) has increased to 21 days for the quarter from 20 days for the last year period. Days sales outstanding went up to 58 days for the quarter compared with 55 days for the same period last year.
Days inventory outstanding was almost stable at 1 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 38 days for the quarter from 36 for the same period last year.
Debt increases substantiallyMatrix Service Company has witnessed an increase in total debt over the last one year. It stood at $17.19 million as on Sep. 30, 2016, up 75.98 percent or $7.42 million from $9.77 million on Sep. 30, 2015. Matrix Service Co has witnessed an increase in long-term debt over the last one year. It stood at $17.19 million as on Sep. 30, 2016, up 75.98 percent or $7.42 million from $9.77 million on Sep. 30, 2015. Total debt was 3.02 percent of total assets as on Sep. 30, 2016, compared with 1.82 percent on Sep. 30, 2015. Debt to equity ratio was at 0.05 as on Sep. 30, 2016, up from 0.03 as on Sep. 30, 2015. Interest coverage ratio improved to 58.85 for the quarter from 57.42 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
